PHOENIX, July 30, 2021 (GLOBE NEWSWIRE) -- Republic Bank of Arizona, the wholly-owned subsidiary of RBAZ Bancorp, Inc. (OTCBB:RBAZ), (“RBAZ”) (“Bank”) announced a net income of $490,000, or $0.27 per share, for the quarter ended June 30, 2021 and $1,047,000, or $0.58 per share, for the six months ended June 30, 2021 as compared to a net income of $159,000, or $0.09 per share, for the quarter ended June 30, 2020 and $171,000, or $0.10 per share, for the six months ended June 30, 2020. Current year earnings of $0.58 per share were comprised of $0.37 per share attributable to core operations and $0.21 per share due to impacts from the Paycheck Protection Program (“PPP”). Prior year earnings of $0.10 per share were comprised of $0.06 per share attributable to core operations and $0.04 per share due to impacts from PPP.
President and CEO Brian Ruisinger stated, “The second quarter featured actions that will shape RBAZ for future growth and stability as we formed a Bank Holding Company and immediately utilized it to raise $6 million in subordinated debt, which provided capital to the Bank. The Paycheck Protection Program once again played a prominent role in our quarterly performance. This time, in the form of 2020 loans being forgiven, while simultaneously funding the new round of PPP loans passed by Congress in 2021. Supporting small to medium-sized businesses is who we are, so we see it as our duty to devote our resources to a program targeted to assist them through crisis.”
Mr. Ruisinger continued, “Separate from PPP, our core operations in Q2 saw modest net loan growth, while deposits grew significantly, both outpacing budget year-to-date. The quarter also featured our routine regulatory exam that occurs every 18 months. While it is a significant strain on our resources, the positive outcome is quite rewarding for our staff and Board. Our team’s work continues to be reflected in our Bauer Five-Star bank rating.”
June 30, 2021 Highlights Include:
- Total loans of $116,897,000 increased $6,976,000, or 6.3%, from December 31, 2020. Of this increase, $1,892,000 was attributable to net PPP loans and the remaining $5,084,000, or 4.6%, were portfolio loans.
- Total deposits of $205,832,000 were up $39,245,000, or 23.6%, from December 31, 2020 as the Bank continued to achieve results from initiatives introduced in 2020, deepened existing relationships and earned new business through increased marketing efforts and online presence. Further, the Bank continued to improve its deposit mix, increasing non-interest bearing deposits to 33.2% of total deposits at June 30, 2021 from 26.2% of total deposits at December 31, 2020.
- The Bank received $5,500,000 in Tier 1 Capital from RBAZ Bancorp, Inc. during the quarter ended June 30, 2021 to support existing and planned growth. Funds received were the result of a $6,000,000 subordinated debt offering completed by RBAZ Bancorp, Inc.
- Total interest income increased $309,000 to $1,744,000 for the quarter ended June 30, 2021 outpacing total interest income of $1,435,000 for the same period of the prior year equating to an increase of 21.5%.
- Cost of deposits was reduced 56.0% to 0.40% for the quarter ended June 30, 2021 from 0.91% for the quarter ended June 30, 2020.
- Total non-interest income is up $82,000 to $104,000 for the quarter ended June 30, 2021 compared to $22,000 for the same period of the prior year as the Bank improved fee income from service charges and other cash management services.
The Bank remains “Well Capitalized” under the Community Bank Leverage Ratio (CBLR) framework adopted January 1, 2020 as follows:
| June 30, 2021 (%) | Ratio to be Well Capitalized (%) | ||
| CBLR ratio | 10.52 | 8.50 |
About the Company
Republic Bank of Arizona is a locally owned, community bank in Phoenix and Scottsdale, Arizona. RBAZ is a full service, community bank providing deposit and loan products and convenient, on-line and mobile banking to individuals, businesses and professionals. The Bank was established in April 2007 and is headquartered at 645 E. Missouri Avenue, Suite 108, Phoenix, AZ. Our second location is at 6909 E. Greenway Parkway, Suite 150, Scottsdale, AZ. The Bank is the wholly-owned subsidiary of RBAZ Bancorp, Inc., which is traded over-the-counter as RBAZ. For further information, please visit our web site: www.republicbankaz.com.
Forward-looking Statements
This press release may include forward-looking statements about RBAZ, for which the Bank claims the protection of safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on management’s knowledge and belief as of today and include information concerning the Bank’s possible or assumed future financial condition, and its results of operations and business. Forward-looking statements are subject to risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include fluctuations in interest rates, government policies and regulations (including monetary and fiscal policies), legislation, economic conditions, borrower capacity to repay, operational factors and competition in the geographic and business areas in which the Bank conducts its operations. All forward-looking statements included in this press release are based on information available at the time of the release, and the Bank assumes no obligation to update any forward-looking statement.
| Unaudited Summary Financial Information | |||||
| For the three months | For the six months | ||||
| ended June 30, | ended June 30, | Year-End | |||
| 2021 | 2020 | 2021 | 2020 | 2020 | |
| (dollars in thousands, except per share data) | |||||
| Summary Income Data: | |||||
| Interest income | $1,744 | $1,435 | $3,517 | $2,708 | $6,137 |
| Interest expense | 201 | 306 | 411 | 602 | 1,187 |
| Net interest income | 1,543 | 1,129 | 3,106 | 2,106 | 4,950 |
| Provision for loan losses | 26 | - | 26 | - | 100 |
| Non-interest income | 104 | 22 | 199 | 45 | 153 |
| Non-interest expense | 977 | 948 | 1,938 | 1,936 | 3,846 |
| Realized loss on sales of securities | 8 | 2 | 7 | 2 | 2 |
| Income before income taxes | 636 | 201 | 1,334 | 213 | 1,155 |
| Provision for income tax | 146 | 42 | 287 | 42 | 301 |
| Net income | $490 | $159 | $1,047 | $171 | $854 |
| Per Share Data: | |||||
| Shares outstanding end-of-period | 1,807 | 1,805 | 1,807 | 1,805 | 1,807 |
| Earnings per common share | $0.27 | $0.09 | $0.58 | $0.10 | $0.47 |
| Cash dividend declared | $- | $- | $- | $- | $- |
| Total shareholders’ equity | $23,620 | $16,099 | $23,620 | $16,099 | $16,982 |
| Book value per share | $13.07 | $8.92 | $13.07 | $8.92 | $9.40 |
| Selected Balance Sheet Data: | |||||
| Total assets | $231,015 | $164,512 | $231,015 | $164,512 | $190,348 |
| Securities available-for-sale, at fair value | 36,198 | 24,621 | 36,198 | 24,621 | 32,935 |
| Securities held-to-maturity | 8,203 | 5,667 | 8,203 | 5,667 | 6,429 |
| Loans | 116,897 | 106,317 | 116,897 | 106,317 | 109,921 |
| Allowance for loan losses | 1,280 | 1,145 | 1,280 | 1,145 | 1,224 |
| Deposits | 205,832 | 116,335 | 205,832 | 116,335 | 166,587 |
| Other borrowings | - | 30,191 | - | 30,191 | 5,000 |
| Shareholders’ equity | 23,620 | 16,099 | 23,620 | 16,099 | 16,982 |
| Performance Ratios: | |||||
| Return on average shareholders’ equity (annualized) (%) | 10.44 | 4.01 | 11.67 | 2.16 | 5.27 |
| Net interest margin (%) | 2.92 | 3.15 | 3.10 | 3.34 | 3.23 |
| Average assets | $220,981 | $149,634 | $210,085 | $131,715 | $158,639 |
| Return on average assets (annualized) (%) | 0.89 | 0.43 | 1.01 | 0.26 | 0.54 |
| Shareholders’ equity to assets (%) | 10.22 | 9.79 | 10.22 | 9.79 | 8.92 |
| Efficiency ratio (%) | 59.10 | 81.51 | 58.19 | 88.91 | 74.56 |
| Asset Quality Data: | |||||
| Nonaccrual loans | $- | $297 | $- | $297 | $- |
| Troubled debt restructurings | $249 | $277 | $249 | $277 | $266 |
| Other real estate | $- | $- | $- | $- | $76 |
| Nonperforming loans | $- | $297 | $- | $297 | $- |
| Nonperforming loans to total assets (%) | - | 0.18 | - | 0.18 | - |
| Nonperforming loans to total loans (%) | - | 0.28 | - | 0.28 | - |
| Reserve for loan losses to total loans (%) | 1.09 | 1.08 | 1.09 | 1.08 | 1.11 |
| Reserve for loan losses to nonperforming loans (%) | n/a | 385.52 | n/a | 385.52 | n/a |
| Net recoveries for period | $15 | $17 | $30 | $28 | $7 |
| Average loans | $113,783 | $96,081 | $114,843 | $85,117 | $100,471 |
| Ratio of net recoveries to average loans (%) | 0.01 | 0.02 | 0.03 | 0.03 | 0.01 |
| CARES Act – Temporary loan payment relief (#) | - | 23 | - | 23 | - |
| CARES Act – Temporary loan payment relief ($) | $- | $19,453 | $- | $19,453 | $- |
| Regulatory Capital Ratios: | |||||
| CBLR ratio (%) | 10.52 | 11.53 | 10.52 | 11.53 | 9.12 |
Contact: Brian Ruisinger
President and Chief Executive Officer
Phone: 602.280.9404
Email: bruisinger@republicaz.com